You have observed a consumer who purchases only goods $x _ { 1 }$ and $x _ { 2 }$ and have concluded that the consumer's tastes are quasilinear in $x _ { 2 }$ .Whether the consumer purchases more or less of $x _ { 1 }$ when the price of $x _ { 1 }$ falls then depends on the size of the substitution effect.

Question

Quizplus · Accepted Answer

The Answer of You have observed a consumer who purchases only goods $x _ { 1 }$ and $x _ { 2 }$ and have concluded that the consumer's tastes are quasilinear in $x _ { 2 }$ .Whether the consumer purchases more or less of $x _ { 1 }$ when the price of $x _ { 1 }$ falls then depends on the size of the substitution effect.

You Have Observed a Consumer Who Purchases Only Goods x1x _ { 1 }x1​

You Have Observed a Consumer Who Purchases Only Goods $x _ { 1 }$